Sweepstakes are one of the most frequently used promotional tools in a marketer's toolbox. Participants engage in sweepstakes promotions for a chance to win a prize through a random drawing. Entries to sweepstakes promotions can be earned through a myriad of activities such as buying a product or service, participating in an activity, revealing personal information etc. Participants are also typically offered an Alternative Method of Entry (AMOE) which allows sweepstakes promotions to avoid issues regarding gambling laws.
Sweepstakes prize formats vary depending on the promotion and the marketing goals tied to the contest. For example, in 2005, McDonalds' through their Monopoly Sweepstakes promoted the fact there was $200 Million in prize money to won. They also advertised the promotion so that every man, woman and child in the United States saw or heard a marketing message about the promotion at least 3 times during the contest period.
Designing a sweepstakes involves several interrelated decisions such as allocating total prize budgets, total discrete prizes, max/min value of each prize or prize type, prize types (cash to or merchandise), total winners, structure of the sweepstakes (e.g., duration, frequency of drawings) etc. One schooled in the arts appreciates that marketers spend a considerable amount of their budgets to fund and advertise these promotions. It is also apparent that marketers seek to optimize their sweepstakes to derive maximum value from the contest.